The Biggest Branding Mistake FinTech Companies Make
The global fintech industry is growing at a rapid clip, driven in large part by artificial intelligence (AI), blockchain, cryptography, biometrics and identity management, cyber-security, and robotic process automation (RPA) technologies evolving almost daily.
According to The Business Research Company, in 2018, the FinTech market was valued at ~$128 billion. By 2022, however, it’s expected to reach ~$310 billion. That’s a staggering 25% growth rate over a mere four years.
As new players continue entering the market and vying for the limelight at an ever-increasing rate, it becomes even more essential for your company to cut through the chatter and connect with your audience in an authentic and memorable way.
How do you increase your competitive advantage in this way? Branding. A refined brand that truly resonates with your audience and stands for a belief that differentiates your company both in its visuals and copy will give them a specific reason to use your services, trust your voice, and keep coming back time and again.
Therefore, as you’re building your brand, be sure to avoid this major mistake.
Leading with What instead of Why
It can be tempting (and quite honestly, easier) to lead with “What” in your marketing and branding efforts. Meaning, talking up all the amazing features of your new product, how it will revolutionize the mobile payments industry, how it’s built on the most secure network, and so on.
But, frankly, your audience doesn’t care enough about your features to be compelled to purchase your product
You must, instead, inspire them to buy. Think of your brand narrative, what your company stands for, what inspired you to build this product in the first place, and what this product says about those who use it. For instance, Apple was founded on the belief that customers should never settle for what’s always been done, they are continually pushing the envelope of what’s possible in the never-ending pursuit of perfection. Apple leads with Why and the “oh by the way, would you like to buy an iPhone?” is almost an afterthought. And it works. Because customers don’t buy What, they buy Why.
Unfortunately, most fintech companies start with WHAT, and understandably so! It’s the easiest to identify and communicate, and you just spent years developing an amazing product with incredible features, you are naturally going to want to brag about it. But if you really want to sell it, you’re going to have to willfully suspend that part of the conversation until you’ve already hooked your customer with Why.
Admittedly, starting with WHY is hard. It involves a lot of introspection, inspiration, vision, and clarity. From having spent numerous years in the financial services sector, my co-founder, Tina, and I have led countless brand messaging workshops to help companies uncover, refine, and effectively communicate their Why.
The Case for Partnering with a Neutral Party
As you begin to tackle your Why, know that it’s not always easy to get past the What to get to your true Why because you’re so close to the product and you’re accustomed to how things are inside your company and may not have a clear view of how your brand could be perceived by outsiders.
In many cases, a branding agency can bring great value to a brand messaging project such as this. By serving as an impartial observer who asks probing questions and makes strategic recommendations, they can help guide you down the right path based on your unique story and motivating factors, in addition to drawing on industry expertise.
Clover Collective has performed numerous brand messaging workshops over the years for many fintech companies, in addition to its co-founders working in the industry for many years. Check out our branding services and get in touch if you’re interested in partnering with our experienced brand strategists. We can’t wait to roll up our sleeves and help you unearth your Why!
